malvernmugadzikwa
Business Writer
Gold mining concern, Caledonia Mining Corporation, says yellow metal output at Blanket Mine increased 2,84 percent to 56 815 ounces in the first nine months of the year compared to the same period last year.
Gold is Zimbabwe’s single largest export while mining in general accounts for more than three-quarters of the country’s total exports.
The mineral-rich Southern African country is targeting 40 tonnes of the precious mineral this year from 30,1 tonnes in 2023.
By next year, the yellow metal is expected to generate US$4 billion for Zimbabwe, from around US$3 billion presently.
In the latest update, the mining group, which looks to become a multi-asset status gold producer in Zimbabwe and elsewhere, said it remained optimistic that it would achieve its production guidance of between 74 000oz and 78 000oz this year.
This is despite output quarter-on-quarter having decreased by 8,6 percent to 18 992oz in the third quarter to September 30, 2024 compared to 20 773oz in the second quarter of this year.
In the third quarter last year, Blanket Mine produced 17 436oz.
“Gold produced in the nine months to the end of September was 56 815oz compared to 55 244oz in the same period in 2023.
“Caledonia reiterates its gold production guidance for 2024 of between 74 000 and 78 000oz,” it said.
Blanket Mine, which is Caledonia’s local flagship last year produced 75 416oz of the yellow metal in line with its production guidance of between 74 000oz and 78 000oz.
While the global metal prices on the international market remain depressed, the gold price has since been firming, reaching over US$2 500 per oz presently from US$1 900 in September last year.
This is because the world is turning to the yellow metal as a safe haven asset to hedge against economic and geopolitical issues.
In its quest to achieve multi-asset gold status, the mining group acquired the Maligreen Goldfields and the Glen Hulme in Gweru, Midlands Province.
In Matabeleland North Province, Caledonia which is listed on the Victoria Falls Stock Exchange, acquired the Bilboes Gold Limited in Bubi, Matabeleland North Province.
The Bilboes project was acquired from businessman, Victor Gapare in 2022 for US$53,3 million.
Prior to being acquired by Gapare, Bilboes was previously owned by Anglo American Corporation Zimbabwe Limited before the mining group exited the Zimbabwean gold sector in 2003.
Meanwhile, Caledonia has announced that the peak funding requirement for its Bilboes gold project is estimated at US$309 million with the bulk of the funding expected to come through debt
Bongani Ndlovu